More than just a hobby, a money maker?

007_reef · Mar 10, 2020

it could never replace my day job, I’ve recently toyed with the idea of starting a small side coral business. I have a spare room laundry room that would be perfect. Making my hobby self sustaining, plus taking advantage of the tax benefits, would be my only real goal.

K7BMG · Mar 10, 2020

Yes the thought has crossed my mind a time or two. But I answered NO!
I currently own my own business and have learned what its all about.
Its not easy and the UN-fun parts take the most time to do.

Owning such a business requires knowing the entire industry, not just the tank in your living room.
Yea you can sell frags to the locals, club members, or your LFS, at fair prices, and you may gain a large group of client's. BUT...as soon as you raise the price of that frag a buck more to cover the expenses of business licence's rent, added utilities, and insurance just to name a few things. Those awesome clients and friends turn to the next guy. Don't believe me that's fine, just ask the guy who is in business.

Once you have a business license the frag has to pay for everything, and your clients stop being cool and will make you liable for a hitchhiker or algae bloom.
These are the things most do not see in the beginning nor understand.

Just pointing out the hard facts of business in general. Its just what it is and most never see it coming. Yes you can deal with it and overcome if you persevere, but its work, hard work, even if you love the hobby and industry.

Dr. Dendrostein · Mar 10, 2020

007_reef said:
it could never replace my day job, I’ve recently toyed with the idea of starting a small side coral business. I have a spare room laundry room that would be perfect. Making my hobby self sustaining, plus taking advantage of the tax benefits, would be my only real goal.

It can supplement your income. If you plan it right

Nudibranch Latin name wormystein

paraletho · Mar 10, 2020

I would never want to try to use the hobby as my sole income stream. Now that I am retired it is a nice side gig to help support my habit. I have some maintenance jobs I do also

K7BMG · Mar 10, 2020

007_reef said:
it could never replace my day job, I’ve recently toyed with the idea of starting a small side coral business. I have a spare room laundry room that would be perfect. Making my hobby self sustaining, plus taking advantage of the tax benefits, would be my only real goal.

Just an FYI as I get the tax break, and write off question often.
This is the most misunderstood part of owning your own business, and most think its a huge benefit to them, trust me its not.

Yes the $100.00 dollar frag tank you just bought for the business is a write off, but the deduction is not 100% write off. I don't know the exact percentages of various things but let me tell you its marginal.
I urge you to speak to a CPA and educate yourself very well on this subject.
You will soon learn that this is not the benefit that most think it is.

I usually broke even, or got a few bucks back on my taxes until I started my business.
Once I started my business I have had to pay taxes every year since.
I take that back, in 2018, I bought quite a lot of equipment. I got a couple hundred bucks back from the IRS, but, now I had a truck payment, insurance, registration, ETC. That was one year out of 14 in business.

reses12 · Mar 10, 2020

Been maintaining aquariums since 2008. Started out part time and now it is full time work. I love it!

Tuffyyyyy · Mar 10, 2020

My dream job since I got into this hobby is the CFO at BRS, does that count?

I started volunteering at a local aquarium because I thought it would be cool to learn how to maintain large tanks, and then maybe start or purchase a servicing company. The aquarium has also had a lot of turnover lately, and so I asked about the salary, just for S&Gs, and it’s like 30% of my current salary...yeesh.

The last idea I’ve had off & on is a website. Ive taken a few web design courses but, for what I have in mind, I’d need to contract it out, and I don’t know if I’m looking for that much of an undertaking.

intricate_reefer · Mar 10, 2020

JerSaint said:
I've made some money to put back into my tank on the sale of frags and flipping items (Mostly putting together whole systems or piecing out bundled purchases). The main way I have jumped into the industry is through a different avenue, by starting and co-hosting a podcast. In the last two years, we have put out 104 episodes! Providing weekly episodes that usually run an hour or so and are full of great content. Check it out if you get a chance, great for commuting or to listen to while servicing your tank. The Reef News Network @ReefNewsNetwork

Love your podcasts, listen to it on my 45 minute ride to school for aquaculture. Problem is I'm starting to catch up, think I am on episode 92. Im going to be going into withdraw when I only get to listen to one a week

User · Mar 10, 2020

JCOLE said:
I guess you aren't into Golf then? I got out of that hobby awhile ago but I know how expensive the hobby was and still is.

I used that analogy because once you purchase the clubs or a frag it is a done deal. Whether you dropped $1200 on a sweet set of Callaways or $350 on a "Rooty Tuity Fresh And Fruity" frag piece, the sale is done. The only investment you have in the corals are lighting, feeding, etc whatever it takes in growing the coral which should be part of the hobby and just what the expenses take to grow it. The same for Golf. After the clubs are purchased then you have the expenses of green fees, lunches, trips to get the course, etc. Again, all of that is part of the hobby of golf. Trying to get rich on corals because you can is anyone's choice, I get that. However. It is not good for the hobby to keep the coral prices jacked up so someone can make a quick buck.

This is for the hobbyist with a Display tank and a single frag tank(like myself) and not toward vendors. I understand vendors have overhead, costs, etc that goes into the business and it just is what it is.

Again, I am into it for the hobby and the experience of growing corals and meeting awesome people along the way. Just doesn't feel right to charge a fellow hobbyist $350 for a tiny nub of my colony I bought for the same price a year ago. But to each their own i guess.

BUt if i buy a golf club, I'll still only have 1 golf club in 18 months.

If I buy a frag, and treat it well, In 18 months it'll be 4-5-10x the size. I can then cut chunks off and sell them.

I don't think people would buy a chopped up piece of a golf club

R0C95 · Mar 10, 2020

Yeah, not to come off sounding rude, but I just see the money in it.

As my tank matures, I wa t to setup local frag swaps. No $$$, just people like me who are willing to trade stuff around.

fish farmer · Mar 10, 2020

Since we are on the subject, looks like ORA is hiring

Oceans, Reefs & Aquariums - Google Search

www.google.com

JCOLE · Mar 10, 2020

neilp2006 said:
BUt if i buy a golf club, I'll still only have 1 golf club in 18 months.

If I buy a frag, and treat it well, In 18 months it'll be 4-5-10x the size. I can then cut chunks off and sell them.

I don't think people would buy a chopped up piece of a golf club

I was referring to buying a set of clubs and then deciding to sell each club of that set individually("fragging")high to recoup your expenses. And yes this does happen in Golf.

I think my point might be getting lost. I don't see anything wrong with fragging a coral in 18 months and selling the frags. I actually would encourage it for the better health of the coral. What I was originally referring to is buying that coral for $200 and in 18 months fragging 6 small pieces and selling them for $200 a piece. That just seems wrong and not right for the hobby.

Again, maybe it is just me but I would feel like I am taking advantage of another hobbyist. I feel when a hobbyist looks at this as an effort to "get rich" then they are missing the point of this hobby. Again, that is only my feeling and might not reflect that of others.

User · Mar 11, 2020

JCOLE said:
I was referring to buying a set of clubs and then deciding to sell each club of that set individually("fragging")high to recoup your expenses. And yes this does happen in Golf.

I think my point might be getting lost. I don't see anything wrong with fragging a coral in 18 months and selling the frags. I actually would encourage it for the better health of the coral. What I was originally referring to is buying that coral for $200 and in 18 months fragging 6 small pieces and selling them for $200 a piece. That just seems wrong and not right for the hobby.

Again, maybe it is just me but I would feel like I am taking advantage of another hobbyist. I feel when a hobbyist looks at this as an effort to "get rich" then they are missing the point of this hobby. Again, that is only my feeling and might not reflect that of others.

I get your point regarding the clubs- I figured I missed something.

But- and I agree entirely with you, just playing 'Filthy Capitalist Pigdog' here- if I buy a 1" nub fur $100, grow it out to 10", then sell 1" nubs for $100, what exactly is wrong with that, other than 'it feels like taking advantage'? I agree it feels icky, but there's nothing wrong with it, per se

Scopulum Zombie · Mar 11, 2020

Paul B said:
It's a hobby for me but I have made some money at it. I have two aquarium related patents, one is the "Majano Wand" and another is a seahorse feeder. The Majano Wand is sold by Marine Depot. I don't own the company and don't want, anything to do with the company. I just get royalties as I didn't want the headaches but I still hold the patent.

The seahorse feeder used to be sold by "Brine Shrimp Direct" and after making thousands of them, I got tired and stopped. But they made some money.

I also made and shipped a few thousand of these to Marine Depot until I got tired of building them and my acrylic tube manufacturer moved to China.

I wrote a book that is doing fairly well. The "Avant -Garde Marine Aquarist" 100% of the profits from that go to Multiple Sclerosis research in my wife's name so I really can't count that as profit.

Wow had no idea that you were behind the Majano wand! Ordering your book tonight. I'm sure there is a thing or two in there I haven't learned from your posts.

JCOLE · Mar 11, 2020

neilp2006 said:
I get your point regarding the clubs- I figured I missed something.

But- and I agree entirely with you, just playing 'Filthy Capitalist Pigdog' here- if I buy a 1" nub fur $100, grow it out to 10", then sell 1" nubs for $100, what exactly is wrong with that, other than 'it feels like taking advantage'? I agree it feels icky, but there's nothing wrong with it, per se

Talk to me in a couple years if this hobby still exists and you will see what's wrong with it. At the rate it is going with prices and if the bans continue as they should with the current state of the reefs then the hobby will not be able to sustain itself. Sure you will have FOWLR tanks but not reef tanks. For the most part no one will be able to afford the hobby.

I pray that doesn't happen. It's just a feeling I have that's all. It never seemed about money 15 years ago. Everyone was anxious to get new coral from each other and not break the bank. Now it seems like it's let's pile together a massive fruit stand of the latest and greatest and sell 6 pack frags of 1/2" nubs for $800+

Tuffyyyyy · Mar 11, 2020

JCOLE said:
Talk to me in a couple years if this hobby still exists and you will see what's wrong with it. At the rate it is going with prices and if the bans continue as they should with the current state of the reefs then the hobby will not be able to sustain itself. Sure you will have FOWLR tanks but not reef tanks. For the most part no one will be able to afford the hobby.

I pray that doesn't happen. It's just a feeling I have that's all. It never seemed about money 15 years ago. Everyone was anxious to get new coral from each other and not break the bank. Now it seems like it's let's pile together a massive fruit stand of the latest and greatest and sell 6 pack frags of 1/2" nubs for $800+

1) I’m a big fan of your music.

2) It’s totally still like that though. There are the vendors at Frag swaps with their Expensive prices, and then there are the people you actually know local to you that will give you whatever coral of Theirs you want. I get several texts every month from friends asking me if I want some free frags they’re about to cut.

JCOLE · Mar 11, 2020

Tuffyyyyy said:
1) I’m a big fan of your music.

2) It’s totally still like that though. There are the vendors at Frag swaps with their Expensive prices, and then there are the people you actually know local to you that will give you whatever coral of Theirs you want. I get several texts every month from friends asking me if I want some free frags they’re about to cut.

Lol. I get that all the time.

That's awesome! That is how it should be. I have some hobbyists around me that will cut big chunks off their colonies for $20 and not get into the name game. I also see it a lot the other way around though. It is what it is. Anyone can do what they want with their systems. It is just a small hobby and the way it has been over the last 5 years is an indication of what is to come. I never looked at this hobby 20 years ago as a way to make money. I seen a fully stocked tank and fell in love. I just hope the newer hobbyist look at this hobby the same way and not get into it for the money.